CHANAKYA NATIONAL LAW UNIVERSITY

NYAYA NAGAR, MITHAPUR, PATNA - 800001

ROUGH DRAFT SUBMITTED IN THE PARTIAL FULFILMENT OF

THE COURSE TITLED –

Contract - 1
Discharge of Contract by Impossibility of
Performance

SUBMITTED TO: -
Mrs. SUSHMITA SINGH
FACULTY OF LAW
SUBMITTED BY: -
VENKAT NILAY
2nd SEMESTER
ROLL NO.: 1863
B.B.A., L.L.B(HONS)
(2017-2022)
INTRODUCTION

The termination of the contractual relationship is called discharge of contract. How the
contract comes to an end or how the contractual relationship in a contract is terminated is
explained through the various modes of discharge of a contract.

One such mode is discharge by impossibility of performance. If an agreement contains an

undertaking to perform an impossibility, it is void ab initio. The rule is based on the
following maxims:

a. Lexicon cogit ad impossibilia, i.e., the law does not recognize what is impossible, and
b. Impossibilium nulla obligato est, i.e., what is impossible does not create an
obligation.

Sometimes after a contract has been established, something might occur, though not at the
fault of either party, which can render the contract impossible to perform, or illegal, or
radically different from that originally undertaken.

Section 56 of the Indian Contract Act, 1872 first lays down the simple principle that "an
agreement to do an act impossible in itself is void". For example, an agreement to discover
a treasure by magic, being impossible of performance, is void. The second paragraph of
Section 56 lays down the effect of subsequent impossibility of performance. Sometimes the
performance of a contract is quite possible when it is made, but some event subsequently
happens which renders its performance impossible or unlawful. In either case the contract
becomes void. Where, for example, after making a contract of marriage, one of the parties
goes mad, or where a contract is made for the import of goods and the import is thereafter
forbidden by a Government Order, or where a singer contracts to sing and becomes too ill to
do so, the contract in each case becomes void.

The performance of a contractual obligation may become subsequently impossible on a

number of grounds. They include the following:

a. Objective impossibility of performance

b. Commercial impracticability
c. Frustration of purpose
d. Temporary impossibility
AIMS AND OBJECTIVES:

 The researcher’s prime aim is to present a detailed study of "DISCHARGE OF

CONTRACT BY IMPOSSIBILITY OF PERFORMANCE", through articles,
affirmations, decisions and suggestions.
 The researcher aims to descriptively provide a critical overview of the topics arising.
 The main goal of this research is to understand the legal position in English and
Indian context.
 And also to know about evolution of related case law(s) with changing spectra of
society.

HYPOTHESIS:

 The researcher presumes that discharge of contract by impossibility of performance is

aimed at protecting parties from performing obligations beyond their capabilities.
Such obligations beyond capability would under normal circumstances affect the
existence and well-being of parties involved.

 The researcher also presumes that safeguards have been put in place to check and
avoid misuse of doctrine impossibility and frustration.

RESEARCH QUESTONS:

1. What is discharge of contract?

2. What are different methods of discharge of contract?
3. What is discharge by impossibility of performance?
4. What is the impossibility of performance?
5. What are initial and supervening impossibility of performance?
6. What is the doctrine of frustration?
7. What is frustration of contract?
8. What are different types of frustrations?
9. What are the exceptions to this rule?
RESEARCH METHODOLOGY:

The researcher will be relying on Doctrinal method of research to complete the project. These
involve various primary and secondary sources of literature and insights.

LIMITATIONS OF THE STUDY:

The researcher has territorial, monetary and time limitations in completing the project.

TENTATIVE CHAPTERIZATION:

1. Introduction
2. Research Questions
3. Discharge of Contract
4. Discharge of Contract by Impossibility of Performance
5. Doctrine of Frustration
6. Exceptions and Positions around the World
7. Conclusion and Suggestion
8. Bibliography

SOURCES OF LITERATURE

a. R K Bangia, CONTRACT-I (7 ed. 2017).

b. Avtar Singh, CONTRACT & SPECIFIC RELIEF (12 ed. 2017).

And others.